Volkswagen Chief Executive Oliver Blume addressed over 10,000 workers on Tuesday at the company’s headquarters in Wolfsburg, northern Germany, to discuss a comprehensive reorganisation aimed at securing the automaker’s future. The presentation was met with significant resistance, with workers holding banners and chanting slogans expressing their opposition to the proposed changes.
Blume characterised the planned restructuring as the largest transformation programme in the company’s history, emphasising that unified action was necessary. He outlined that the initiative aims to establish viable prospects for all manufacturing locations within six to 12 months. The chief executive stressed that proposed workforce reductions, which have been cited at approximately 50,000 globally, represent a “theoretical calculation” rather than a firm target. According to reports from attendees, Blume indicated that roughly half of the anticipated cuts would occur in Germany, with the remainder spread across approximately 170 international operations. He attributed the need for change to the company’s costs being approximately 30% above those of comparable manufacturers.
The restructuring plans require approval from the supervisory board, which includes labour representatives, Lower Saxony’s government, and shareholders. Blume expressed preference for voluntary measures such as phased retirement and natural attrition over forced reductions. Factory closures were characterised as a final resort, though several facilities face uncertain futures. The Osnabrück plant’s automotive production is slated to cease potentially as soon as next year, while facilities in Emden, Zwickau, Neckarsulm, and Hanover have no manufacturing plans beyond 2030. Alternative proposals include manufacturing electric vehicles for the Chinese market at German facilities and potential defence industry production.
Daniela Cavallo, head of the works council, expressed damaged trust in both the executive board and Blume specifically, accusing leadership of insufficient transparency regarding company direction. The automaker contends with mounting pressures from Chinese competition in Europe, declining Chinese market sales, and substantial US tariffs. Previous cost reduction efforts, including a 20% reduction at German factories the prior year, proved inadequate. Blume characterised the company’s current situation as “more than critical,” noting that VW is too large, too slow, and overly complex. He is scheduled to attend eight additional works council meetings at various facilities over the coming period.
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